· Evaluate the business riskand any debt/equity decisions recently made for Apple Inc. · Identify at least threebusiness risks Apple Inc may face in the next calendar year. Do the financial...

Introduction
Apple Inc, a technology company engaged in designing, manufacturing and marketing of personal
computers, mobile and other related products and services. The Company’s products are distributed
across the globe. Being a Technology Company, the Company majorly faces the risk of technology
obsolesce and competition. Further, the strength of Technology Company lies in its research and
ownership of new intellectual property rights. In addition to risk faced by Apple, the article highlights the
factors that would prove risky for Apple in 2013.
Business risk
 Global Economy
As Apple's products are sold across the globe, any economic uncertainty and financial instability will
directly impact Apple’s revenue. As unstable economic environment leads high unemployment rate,
decline in asset value or financial market volatility which in turn lowers customer confidence, thereby
adversely affects the demand for Apple’s product and services.
 Competitive Industry
This technology sector is subject to high competition and rapid technological changes. To
successfully compete, the Company must incur significant expense towards research and
development. Such expense enables the Company to develop innovative product that have unique
design and are based on latest technology. Further, to attain additional market share, the
competitors aggressively cut price, and at times may infringe company’s intellectual property. At
times, the competitors collaborate to introduce new product at very low cost. Thus, the Company’s
future financial and operating condition is dependent on its ability to handle competition.
 Intellectual Property
Many Apple products include third-party intellectual property that requires licenses from those
parties. If Apple is unable to renew these licenses at reasonable cost, then it would affect its profit
margin adversely. Over the period of time, many competitors have infringed the Company’s patent.
As a result, the Company has entered into litigation with those parties, which are time-consuming. In
addition, if the outcome of litigation in not in Company’s favor, it may have to pay substantial
expenses towards damage. Further, the Company may be prohibited from...